Man found guilty of wire fraud in elaborate tech scam involving space travel, robotics

SAN FRANCISCO (KRON) — In the end, it was all just science fiction.

At least that’s what Acting United States Attorney Patrick D. Robbins called it after a federal jury convicted a man who scammed investors by basically inventing a company with no legitimate business. Ramesh Kris Nathan was found guilty of six counts of wire fraud and two counts of money laundering following an eight-day jury trial, according to the U.S. Attorney’s Office.

The company, Relativity Research Fund, Inc. had a bank account in San Francisco, and very little else. But according to Nathan, 43, the company was a bold startup involved in the research and development of advanced technologies.

These technologies, according to officials, included prototype spacecraft, space-related propulsion systems, and robotics. Nathan convinced investors that their money would fund the company and made false promises of future trading of the company’s shares on the Nasdaq Private Market.

“Ramesh Nathan spun fantastic tales about space travel technology and advanced robotics to entice investors into funding his company, but all he had to offer was science fiction,” said Robbins. “He deceived his investors, many of whom were veterans, about a nonexistent business. Then he used the ill-gotten funds to line his own pockets.”

“Ramesh Nathan orchestrated a scheme rooted in deception, betraying the trust of investors for his own gain,” said FBI Special Agent in Charge Sanjay Virmani. “Today’s guilty verdict reflects the seriousness of his crimes and brings justice to the victims he defrauded.”

Trial evidence showed that Nathan had induced potential investors by making false and misleading claims on his company’s website, in promotional materials and emails. Among other things, he claimed that Relativity was developing advanced robotics and space travel technology.

He also told outlandish lies, claiming that the company had significant capital investments, worldwide officers, over 15,000 employees, and tens of billions in profit and revenue. Nathan would launder investor funds through various bank accounts and then used the money for personal expenses and transfers to his mother and then-girlfriend, the jury found.

The fraudulent scheme was carried out by recruiting an intermediary to share the lies with investors, many of whom were veterans, according to officials.

Nathan faces a maximum of 20 years in prison for each count of wire fraud and 10 years for each count of money laundering. He will next appear in court on June 13.